My recommendation would be to perform a home inspection prior to the offer. In this way, you can reduce your offer price before presenting the offer to the bank.
In addition, removing the home inspection contingency makes your offer more attractive to the bank.
Franceca Patrizio, Broker Sales Associate, ePro, SRES
With a short sale there are two levels of negotiations...first with the seller and secondly with their lender. Our recommendation is to negotiate your best deal with the seller and hope your agent can justify that amount the the lender. Banks rarely accept offers that are "way off" the local market value.
There's no harm in trying....at some point you will come to understand if the lender will consider your offer a serious one.
In most cases with a short sale, the property is sold 'as is'. The seller's usually don't have the money for repairs and most lenders won't pay for them. HOWEVER, it doesn't hurt to ask for the repairs - especially if they are safety issues. The worst thing that could happen is the lender says 'no'. I've had short sales close where the lender has paid for repairs but only on safety items, not cosmetic repairs.
Keith Radhuber, Broker Associate
If this is something you are very interested in, I would suggest looking at properties that have already been foreclosed and you will be dealing only with the lender. This allows more flexibility in negotiations. You will also have an easier time adding the potential for a 203k loan.
If you are determined to try negotiating repairs on short sales, bring a lot of cash, in order to discount the price.
Most sellers are walking away with no equity. thats why it is a Short Sale.
occasionally you may find a motivated seller that may be willing to do something minor.
If they had the money to fix something major they would have used it to save their house.
For Short Sales before you make an offer you should take into consideration any repairs. cost of getting the Certificate of Occupancy and any permits that may need to satisfied for the local town.